Bristow Group, Inc. · NYSE:VTOL
Bristow — Q4 FY2017 Earnings Presentation
46 slides from Bristow's earnings presentation, May 24, 2017
Slide 1: Fourth quarter FY17 earnings presentation
Fourth quarter FY17 earnings presentation Bristow Group Inc. May 24, 2017 Exhibit 99.1
Slide 2: Forward-looking statements
Forward-looking statements Statements contained in this presentation regarding the Company’s or management’s intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. These forward-looking statements include statements regarding earnings guidance and earni
Slide 3: Executive summary and safety review
Executive summary and safety review
Slide 4: Q4 FY17 operational safety review
Q4 FY17 operational safety review AAR prior to FY16 includes commercial helicopter operations for Bristow Group and consolidated affiliates. AAR beginning in FY16 includes all Category A and B accidents for consolidated Bristow operations, including Airnorth, Bristow Academy and Eastern Airways. FY1
Slide 5: Our successful response to FY17 challenges provides a roadmap for FY18
Our successful response to FY17 challenges provides a roadmap and confidence for success in FY18 The March 2017 quarter results reflect continued pressure on our oil and gas business as offshore activity remains low Our FY17 results were also impacted by the grounding of the H225, including increase
Slide 6: FY18 begins with liquidity of $357 million
FY18 begins with liquidity of $357 million due to excellent progress in FY17 Total liquidity1 $ in millions At period end Announced/closed but unfunded financings plus reported liquidity as of March 31, 2017 Subject to execution of definitive agreements and market conditions 415 530 370 360 PF: 587
Slide 7: Levers that can increase FY18 ending liquidity
We have a number of levers that can increase our $200 - $245 million FY18 ending liquidity These additional actions are underway, similar to FY17’s successful efforts Further cost efficiencies with portfolio optimization OEM cost recovery and capex deferrals Additional low-cost financings We can imp
Slide 8: FY18 guidance as of March 31, 2017
FY18 guidance as of March 31, 20171 FY18 guidance assumes FX rates as of March 31, 2017 Operating revenue, adjusted EBITDA and rent for oil and gas includes corporate and other revenue and the impact of corporate overhead expenses Adjusted EBITDA for U.K. SAR and fixed wing (Eastern/Airnorth) exclud
Slide 9: Additional steps to be successful in FY18 and beyond
Similar to FY17, we are taking additional steps to be successful in FY18 and beyond We remain focused on continuing to improve safety performance in FY18 Offshore E&P spend is expected to remain low in FY18 with the offshore transportation industry also going through structural changes that will req
Slide 10: Operational highlights
Operational highlights
Slide 11: Q4 FY17 results
Q4 FY17 results Adjusted EBITDA1 $ in millions Operating revenue $ in millions Net income (loss) Adjusted net income (loss) 1) Adjusted EBITDA and adjusted net income (loss) excludes gains (losses) on asset dispositions and special items
Slide 12: Europe Caspian
Europe Caspian United Kingdom Norway Turkmenistan Operating revenue $ in millions $ in millions Adjusted EBITDA1 1) Adjusted EBITDA and adjusted net income (loss) excludes gains (losses) on asset dispositions and special items
Slide 13: U.K. SAR
U.K. SAR 1) LACE count based on aircraft types specified in original contract
Slide 14: Africa
Africa Nigeria Egypt $ in millions Operating revenue $ in millions Adjusted EBITDA1 1) Adjusted EBITDA and adjusted net income (loss) excludes gains (losses) on asset dispositions and special items
Slide 15: Americas
Americas United States Canada Brazil Trinidad Operating revenue $ in millions Guyana $ in millions Adjusted EBITDA1 1) Adjusted EBITDA and adjusted net income (loss) excludes gains (losses) on asset dispositions and special items
Slide 16: Líder update
Líder update Líder adjusted EBITDA1 1) Reconciliation of adjusted EBITDA, leverage and BVA provided in the appendix
Slide 17: Asia Pacific
Asia Pacific Russia Australia Malaysia Operating revenue $ in millions $ in millions Adjusted EBITDA1 1) Adjusted EBITDA and adjusted net income (loss) excludes gains (losses) on asset dispositions and special items
Slide 18: Appendix
Appendix
Slide 19: Financing update
Financing update Funded $200 million equipment financing secured by 20 oil and gas aircraft Lease five oil and gas aircraft as part of overall financing and to manage fleet operations Five-year borrowing at Libor + 5.35% Funded $200 million secured aircraft equipment financings $110 million facility
Slide 20: Organizational chart as of March 31, 2017
Organizational chart as of March 31, 2017 Business Unit (% of current period operating revenue) Corporate Region ( # of helicopters / # of fixed wing ) Joint Venture (# of aircraft) Key Operated Aircraft Bristow owned and/or operated 348 aircraft Affiliated Aircraft Bristow affiliates and joint vent
Slide 21: Fleet as of March 31, 2017
Next Generation Aircraft Mature Aircraft Medium capacity 12-15 passengers Large capacity 16-25 passengers Fleet as of March 31, 2017
Slide 22: Fleet as of March 31, 2017 (continued)
Mature Aircraft 1) LACE does not include held for sale, training helicopters and fixed wing Next Generation Aircraft Small capacity 4-7 passengers Training capacity 2-6 passengers Fleet as of March 31, 2017 (continued)
Slide 23: Leased aircraft detail as of March 31, 2017
Of the 122 aircraft currently leased in our fleet, 86 are commercial (71 LACE), 17 are training and 19 are fixed wing 71 LACE aircraft represent approximately 41% of our commercial fleet Our goal is for commercial fleet operating leases to account for approximately 35% of our LACE 1) The percentage
Slide 24: Consolidated fleet changes and aircraft sales
See 10-K Note 7 “Commitments and Contingencies” for more information provided on operating leases Consolidated fleet changes and aircraft sales
Slide 25: Held for sale and leased fleet by region
See 10-K Note 7 “Commitments and Contingencies” for more information provided on operating leases Held for sale and leased fleet by region
Slide 26: Operating revenue, LACE and LACE rate by region
Operating revenue, LACE and LACE rate by region 4 $ in millions LACE rate is annualized $ in millions per LACE Excludes assets held for sale, Bristow Academy, Airnorth and Eastern Airways
Slide 27: Historical LACE by region
Historical LACE by region Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Europe Caspian 48 46 52 56 58 60 60 57 62 68 70 72 Africa 23 23 21 21 21 22 23 24 24 24 22 21 Americas 48 46 53 52 51 48 48 47 47 45 46 45 Asia Pacific 29 28 28 30 30 30 34 30 31 29 31 29 Consolidated 147 142 154 158 161 160 165 158 163 1
Slide 28: Historical LACE rate by region
Historical LACE rate by region $ in millions LACE rate calculated as YTD revenue annualized divided by period ending LACE count
Slide 29: Order and options book as of March 31, 2017
Order and options book as of March 31, 2017 Orders that can be cancelled prior to delivery date
Slide 30: Net asset fair market value
NOTE: The company derives market value from observable market data if available and may require utilization of estimates, applications of significant judgment and reliance upon valuation specialists’ and third party analysts’ reports. When using third party reports, the market value is as of the dat
Slide 31: Net asset FMV reconciliation
Net asset FMV reconciliation The net asset FMV disclosed herein includes the last reported FMV (reported in Q3 FY17 earnings presentation) for 16 owned H225s totaling ~$340 million. Excluding these aircraft, net asset FMV per share would decrease by $9.43 to $33.32.
Slide 32: Adjusted EBITDA margin trend by region
Adjusted EBITDA margin trend by region Adjusted EBITDA excludes special items and asset dispositions and margin is calculated by taking adjusted EBITDA divided by operating revenue
Slide 33: Historical U.K. SAR performance
Historical U.K. SAR performance GAP and U.K. SAR operating results are included within our Europe-Caspian region results. EBITDA excludes corporate overhead allocations consistent with financial reporting. EBITDA is a non-GAAP measure of which the most comparable GAAP measure is net income (loss). W
Slide 34: Historical fixed wing performance
Historical fixed wing performance Fixed wing operating results are included within their respective regional results. EBITDA excludes corporate overhead allocations consistent with financial reporting. EBITDA is a non-GAAP measure of which the most comparable GAAP measure is net income (loss). We ha
Slide 35: Adjusted EBITDA reconciliation
Adjusted EBITDA reconciliation Adjusted EBITDA excludes special items and asset dispositions
Slide 36: Adjusted EBITDA regional reconciliation
Adjusted EBITDA regional reconciliation Adjusted EBITDA excludes special items and asset dispositions
Slide 37: Rent by region
Rent by region FY15 FY16, $ in millions 1 Q2 Q3 Q4 Full Year Qi Q2 Q3 Q4 Full Year Europe Caspian $18.9 $20.9 $30.2 $33.3 $103.3 $34.7 $35.0 $334 $33.3 $136.4 Africa $1.9 $2.0 $1.5 $1.6 $7.0 $1.8 $17 $2.5 $1.4 $7.5 mericas: $5.0 $5.1 $5.6 $5.0 $20.7 $5.4 $5.8 $5.0 $4.8 $21.0 Asia Pacific $5.1 $5.2 $
Slide 38: GAAP reconciliation
GAAP reconciliation See information about special items in 10-K or earnings release for Q4 FY17 These amounts are presented after applying the appropriate tax effect to each item and dividing by the weighted average shares outstanding during the related period to calculate the earnings per share imp
Slide 39: Bristow Value Added (BVA)
Bristow Value Added (BVA) BVA is computed by subtracting a capital charge (10.5%) for the use of gross invested capital from after tax operating cash flow GCF Return % is based on trailing twelve months after tax operating cash flows (Gross Cash Flow) over average quarterly gross invested capital (G
Slide 40: Bristow Value Added (BVA) sample calculation
Bristow Value Added (BVA) Sample calculation for Q4 FY17 and Q4 FY16 Bristow Value Added = Gross Cash Flow – (Gross Operating Assets X Capital Charge) BVA = GCF – (GOA x 10.5%1) Bristow Value Added calculation for Q4 FY17 $(38.0) = $60.1 – ($3,737* x 2.625%1) Bristow Value Added calculation for Q4 F
Slide 41: Líder Bristow Value Added (BVA) sample calculation
Líder Bristow Value Added (BVA) Sample calculation for Q4 FY17 and Q4 FY16 Bristow Value Added = Gross Cash Flow – (Gross Operating Assets X Capital Charge) BVA = GCF – (GOA x 10.5%1) Bristow Value Added calculation for Q4 FY17 $1 = $5 – ($174* x 2.625%1) Bristow Value Added calculation for Q4 FY16
Slide 42: Líder's adjusted EBITDA reconciliation
Líder's adjusted EBITDA reconciliation Adjusted EBITDA excludes special items and asset dispositions
Slide 43: Líder leverage
Líder leverage Adjusted EBITDA excludes special items and asset dispositions
Slide 44: Bank financial covenants
Bank financial covenants Senior secured leverage rati Current ratio $ nntions March 31, 2017 § in millions March 31, 2017 Term $262 Total current assets 3508 Term loan credit feity 46 Less: assets HFS (38) Revolving credit facility 139 Revolver availablity less $25M 235 Covenant PV of leases 542 Tot
Slide 45: Total leverage reconciliation
Adjusted EBITDA excludes gains and losses on dispositions of assets Debt does not include unamortized debt issuance cost Total leverage reconciliation
Slide 46: Contact us
Bristow Group Inc. (NYSE: BRS) 2103 City West Blvd., 4th Floor Houston, Texas 77042 t 713.267.7600 f 713.267.7620 bristowgroup.com Contact us